FTX chief executive Sam Bankman-Fried thinks one primary crypto use case will push the digital asset sector into the world of traditional finance.
Bankman-Fried notes in a new interview on the Unchained Podcast that it takes two days for money to get delivered through the traditional equities market, which can potentially lead to trades getting canceled and that that is worse on the cash side where it takes a month for cash to “definitely, definitely settle.”
“Starting from that position, well, then what happens when markets get volatile? The answer is that risk just overwhelms the system. How do you fix that? You fix that with clean, clear, unambiguous settlements that are fast and cheap. And that’s what blockchain does. That’s its core, most-obvious use case.
And so one of the first things that I think blockchain may really help quite a bit is a financial settlement. Excited to see that happen in traditional finance. And I think that we’re going to start to see bleed over from that if nothing else in the not-too-distant future.
And outside of that, I think there’s a lot else that can happen here, and I think that we’re just going to see this intersection increase and increase and increase over time.”
Bankman-Fried says that’s why FTX has worked to increase its presence in traditional finance. He believes crypto rails have something to offer the traditional finance sector.
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